How Does the Labor Shortage Impact Commercial Real Estate
August 2021
Video Highlights
Supported by the economic reopening, job openings surged to a record high 10.1M in June.
The labor force has 8.7M unemployed persons in July.
This disconnect in hiring is weighing on CRE performance:
As builders struggle to find workers, real estate development slows.
Labor shortages stoke wage growth, a very sticky form of inflation. If Inflation gets out of control, the Fed may be forced to raise rates.
More workers may return to the workforce in the coming months as enhanced unemployment benefits expire and as children return to school.